Nokia is reducing its workforce by as much as 10,000 jobs over the next two years.
The cuts will see the telecommunications, information technology, and consumer electronics giant go from an organization of 90,000 employees to somewhere between 80,000 and 85,000.
The cuts will offset increased investments in research and development, including 5G, cloud and digital infrastructure, salary inflation, and other areas that will benefit it in the long-term.
“We do not make decisions on light grounds that have a potential impact on our employees. Ensuring the right skills and competencies is a necessary step to achieve long-term sustainable performance. It is important to me that our employees get the support they need in this process,” CEO Pekka Lundmark said in the company’s press release.
Nokia estimates that it will save around 600-700 million euros ($715 million-$834 million) by 2023 through redundancies and other restructuring.
According to the company, the cuts are related to a new business model introduced by Nokia in October.